Akin Gump Represents Carestream Health's First Lien and Second Lien Lenders in Restructuring Plan Before US Bankruptcy Court for the District of Delaware

Akin Gump represented an ad hoc group of first lien and second lien lenders (the “Crossover Group”) of Carestream Health (“Carestream”) in its fully consensual “prepackaged” restructuring plan before the United States Bankruptcy Court for the District of Delaware. Carestream, a global provider of medical imaging systems and non-destructive testing, filed for chapter 11 on August 23, 2022, and the plan was confirmed and became effective on September 28, 2022. Under the restructuring plan, Carestream eliminated approximately $470 million of its approximately $1 billion of outstanding debt at the time of the chapter 11 filing and significantly strengthened its balance sheet to support its operations and the continued execution of its strategic priorities.

Akin Gump has represented the Crossover Group since September of 2021. The Crossover Group, holding more than 70 percent of the first lien claims and more than 99 percent of the second lien claims, entered into a prepetition restructuring support agreement with Carestream, which set forth the restructuring terms that were implemented through the chapter 11 cases. Certain members of the Crossover Group provided $80 million in debtor-in-possession financing. Holders of second lien claims agreed to equitize their debt and $75 million of new capital was provided pursuant to an equity rights offering.

The Akin Gump team was led by financial restructuring partners Ira Dizengoff, Philip Dublin and Naomi Moss; finance partner Chad Nichols; and corporate partner Iain Wood; and included financial restructuring counsel Gary Ritacco and associates Malak Doss and Angeline Leggiero; corporate counsel Anthony Ameduri and associates Peter Wright and Rafita Ahlam; and international trade associate Andrzej O’Leary.

Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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